Joint Venture Non Compete Agreement Sample

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A Joint Venture Non Compete Agreement Sample: What You Need to Know

If you’re entering into a joint venture, it’s important to protect your interests and ensure that each party involved can agree on the terms of the partnership. One common way to do this is through a non compete agreement. In this article, we’ll provide a sample joint venture non compete agreement and discuss its key components.

What is a Joint Venture Non Compete Agreement?

A joint venture non compete agreement is a legal document that outlines the terms and conditions of a joint venture partnership. It specifically addresses the issue of competition between the parties involved. The goal of the agreement is to prevent the partners from competing with each other, inside or outside of the joint venture, during the term of the agreement.

Sample Joint Venture Non Compete Agreement

[Company Name] (“JV Partner 1”) and [Company Name] (“JV Partner 2”) hereby enter into a joint venture non compete agreement (the “Agreement”) effective as of [Date] (the “Effective Date”).

1. Purpose

The purpose of this Agreement is to establish the terms and conditions of the joint venture partnership between JV Partner 1 and JV Partner 2 and to prohibit each party from competing with each other during the term of the agreement.

2. Term

The term of this Agreement shall be [Duration], commencing on the Effective Date and ending on [End Date] (the “Term”).

3. Non Competition

During the Term of this Agreement, neither JV Partner 1 nor JV Partner 2 shall engage in any activity that is in direct competition with the joint venture. This includes, but is not limited to, the following:

– Offering products or services that are similar or identical to those offered by the joint venture

– Soliciting customers or clients of the joint venture

– Recruiting employees of the joint venture

4. Remedies

In the event that either JV Partner 1 or JV Partner 2 breaches the non compete provision of this Agreement, the non-breaching party shall be entitled to seek injunctive relief to prevent the breach and/or damages caused by the breach.

5. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of [State].

6. Entire Agreement

This Agreement contains the entire understanding of the parties and supersedes all prior and contemporaneous negotiations and agreements between them, whether written or oral.

7. Amendments

This Agreement may not be amended except in writing signed by both JV Partner 1 and JV Partner 2.

8. Counterparts

This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

Conclusion

A joint venture non compete agreement is an important tool for protecting your interests in a joint venture partnership. This sample agreement should give you a good idea of the key components that should be included. However, it’s important to remember that each agreement should be tailored to the specific circumstances of the partnership. If you’re unsure about any aspect of the agreement, it’s best to consult with a legal professional to ensure that your interests are fully protected.